Seminar Questions – Retirement Planning

If you use your catch-up options plus max out your employee contribution limits to your 403(b), what does that do to the calculation of your STRS benefit? We use the three highest consecutive years of salary as our benefit calculations for STRS. Does our three highest consecutive years' salary determination go way down because we choose to max out our 403(b) contributions?

No, contributions to your 403(b) or 457 plan(s) do not affect your CalSTRS benefit. Your compensation is based on your gross salary, not your net salary after taxes, voluntary contributions to 403(b) or 457 plans, or other deductions.